Federal Budget

Super Flow-Through Shares

As a made-in-Canada financing tool, flow-through shares (FTS) have propelled Canada to be a global leader in mineral exploration and mining. The Government of Canada is currently reviewing the merits of the FTS system, as well as the Mineral Exploration Tax Credit (METC), and the PDAC, along with our industry partners and sister association's across the country, are stepping up to ensure that the government is aware of the importance of this vital incentive tool to the industry's prosperity.

PDAC has highlighted the importance of the super flow-through system in its Pre-Budget Submission, submitted in August 2016 for Budget 2017, as well as in a detailed technical analysis submitted to Finance Canada in October 2016. In addition, PDAC has engaged its members to gather their perspectives on the importance of this unique fiscal policy innovation. Summaries of interviews with our members, and member responses to a PDAC questionnaire distributed in August 2016, are provided below along with case studies of two existing mines that benefited from the issuing of super flow-through shares.

Case studies

Two examples of how flow-through shares contributed to the discovery and development of a mineral deposit into an operating mine.

Agnico Eagle - Meadowbank gold mine
Meadowbank Case Study

Thompson Creek Metals - Mt. Milligan copper & gold mine
Thompson Creek Metals Case Study


In an effort to gather information on how super flow-through funds are used, PDAC distributed a questionnaire to mining industry professionals. These questions looked at the importance of flow-through shares in:

  • Funding discoveries of new deposits.
  • Creating economic opportunities across the country.
Of the 54 representatives who responded, 46 had raised flow-through financing in the last 20 years.

Results of questionnaire

The impact of super flow-through shares

The PDAC conducted a number of interviews with CEOs, CFOs and executives of Canadian mining companies to gather more information and clarify responses from participants of the questionnaire. The interviews gathered additional information on three topics: 

  • Financing deals.
  • Exploration work carried out with flow-through funds.
  • Socio-economic benefits of the exploration work.

Read the interviews